The Second Quarter Results Preview Stands Mixed - Dynamic Levels

Now that the second quarter ended on the 30th September, the Street has its eyes set on the results. After a disappointing show in the previous quarter result, India Inc is likely to report a bounce back in revenue and net profit for the September quarter. The revenue has witnessed a series of fall in five quarters and is now expected to grow for the third consecutive quarter, reflecting a stea

10/10/2016 3:18:04 PM | Posted in Broking Firm Views - Sector Report read full news
India Telecom - Spectrum auctions see aggressive capacity building - RCML

The Oct’16 spectrum auctions saw higher-than-expected outlay from telecom operators. While Idea and Vodafone expectedly filled up data portfolio gaps, the extent of capacity-led bidding by players was surprising. 700 and 900MHz bands were entirely unsold due to high reserve price, which should now see a downward revision. Such aggressive capacity building amid slowing data adoption would

8/10/2016 5:09:03 PM | Posted in Broking Firm Views - Sector Report read full news
Banking and NBFC - Sector Update > Q2FY2017 earnings preview - Sharekhan

Q2FY2017 result expectations

Incremental slippages expected to be lower:

Coming after couple of challenging quarters, when asset quality pressures increased sharply, Q2FY2017 will be a significant quarter, as overall performance of the banks is likely to improve a tad (relatively speaking). Lower intensity in

8/10/2016 4:01:17 PM | Posted in Broking Firm Views - Sector Report read full news
India Telecom - Q2 Preview: Seasonally weak quarter; stay selective - RCML

We expect our telecom universe to report tepid QoQ wireless revenue in Q2FY17 due to negative seasonality and slower data adoption. Margins are likely to dip QoQ due to lower voice minutes and ARPMs. For Bharti-Africa, we expect a weaker performance primarily due to unfavourable currency movements (NGN depreciated 47% QoQ vs USD). TCOM should deliver steady data growth but margins are likely to

8/10/2016 3:28:10 PM | Posted in Broking Firm Views - Sector Report read full news
Which Sectors Will Draw Maximum Attention Of Investors? - Dynamic Levels

Last ten days have been very eventful for the market. The traders a sharp fall amid political tension between India and its neighbor Pakistan. However as soon as the tension subsided Nifty share price picked up and went back to the level of 8800. Wednesday and Thursday saw some profit booking though and the index gave correction.

The June quarter saw a mixed basket of earnings and all

8/10/2016 11:28:40 AM | Posted in Broking Firm Views - Sector Report read full news
Vodafone wins the auction, followed by Airtel, Jio, and Idea - Dynamic Levels

Thursday witnessed the end of the India’s largest but tepid Spectrum sale. The government raised 657.9 billion rupees against the spectrum of Rs. 5.6 trillion. This means nearly 60% of the airwaves were left unsold, including the premium 4G bands. Around 956 MHz was sold by the government amounting to 41% of the total spectrum put up for sale. The sale also missed the estimates of brokera

7/10/2016 5:05:25 PM | Posted in Broking Firm Views - Sector Report read full news
Pharma Sector Update > Q2FY2017 earnings preview - Sharekhan

Q2FY2017 result expectations

Benign quarter:

In view of the improving domestic performance amid strong ‘acute’ season, most of the pharma companies under our coverage are likely to report decent earnings growth during Q2FY2017. Also, a stable currency environment and new drug approvals in Emergin

7/10/2016 3:23:16 PM | Posted in Broking Firm Views - Sector Report read full news
Challenging Quarter, Future Imperfect - Reliance sec

Sector Preview

We expect the IT firms under our coverage universe (ex-Majesco) to post a combined 1.5% sequential rise in USD revenue in 2QFY17. We expect the USD revenue growth of Top-5 IT firms to range between -0.7% to +2.6% qoq in reported terms, with Infosys likely to lead the pack. Mid-sized firms will see variation, with Persistent Systems &

7/10/2016 12:00:38 PM | Posted in Broking Firm Views - Sector Report read full news
India Financials - RBI issues new operational guidelines for SFBs - RCML

The RBI has issued a new set of guidelines for small finance banks (SFBs) in order to align their operations with universal banks. Key takeaways are as follows:

* LCR requirement:

Apart from the cash reserve ratio (CRR) and the statutory liquidity ratio (SLR), SFBs now have to maintain a minimum liquidity coverage ratio (LCR) of 60% till Dec

7/10/2016 11:46:47 AM | Posted in Broking Firm Views - Sector Report read full news
IT Sector Update > Q2FY2017 earnings preview - Sharekhan

Q2FY2017 result expectations

Modest growth exacerbated by cross-currency headwinds:

Despite the July-September quarter being a seasonally strong quarter historically for the IT sector, the USD revenue growth in Q2FY2017 will remain modest, owing to cross-currency headwinds (8% GBP depreciation vs USD), delay in ramp-

6/10/2016 4:00:48 PM | Posted in Broking Firm Views - Sector Report read full news
Financials - Banks - Trading gains and lower cost of funds to drive earnings - Motilal Oswal

PSBs asset quality to show improvement; PBs to utilize one off gains to clean up

* We expect earnings to improve sequentially, as 2HFY16 and 1QFY17 earnings were marred by (a) AQR related issues, and (b) accelerated stress addition and provisioning. While provisions are likely to remain elevated (due to the lag impact of NPL addition), we believe incre

6/10/2016 3:39:09 PM | Posted in Broking Firm Views - Sector Report read full news
India Financials - Q2 Preview: Treasury gains to prop up earnings - RCML

We expect Q2FY17 to be a relatively better quarter for our banking universe with only a 3% YoY decline in PAT as strong treasury gains will likely support profitability. The pace of slippages should reduce, but we expect provisions to stay high due to ageing NPAs. We expect subdued loan growth for our banking coverage, though mid-size private banks are likely to maintain robust 20%+ growth. Sma

6/10/2016 3:17:49 PM | Posted in Broking Firm Views - Sector Report read full news
India Financials - Recovery still some time away: Crisil - RCML

Key takeaways from Crisil’s latest webinar on rating movements are as follows:

* Debt-weighted credit ratio the highest in five years:

Crisil’s webinar on ratings movement indicated that India’s debt-weighted credit ratio (debt of firms upgraded by Crisil to those downgraded) has increased

6/10/2016 3:05:35 PM | Posted in Broking Firm Views - Sector Report read full news
India Consumer - Q2 Preview: Anaemic quarter ahead - RCML

Our consumer universe continued to exhibit lackluster sales momentum in Q2FY17 with no cheer on either volumes or pricing. We expect aggregate sales/adj. PAT to grow at 9.3%/ 12.5% YoY, along with 55bps EBITDA margin expansion. With sales growth likely to remain anaemic in FY17 and margins at peak levels given the rising fragmentation of demand, we reiterate our negative stance on the sector. I

5/10/2016 5:13:57 PM | Posted in Broking Firm Views - Sector Report read full news
Media Sector - Muted ad growth - ICICI Sec

We estimate Q2FY17 to be a weak quarter as advertising growth is expected to be muted. We expect our ISEC universe to report 3% QoQ ad growth and slowdown in advertising in this quarter is likely to be seasonal and full year advertising is unlikely to disappoint. We expect ZEEL to post ad revenue growth of 16% (Q1FY17 was 19%) owing to a high base and some weakness in ratings in flagship channe

5/10/2016 5:06:50 PM | Posted in Broking Firm Views - Sector Report read full news
Robust Show - Monthly Sector Update - Reliance sec

Ahead of festive months, the consumer vehicle players have came out with strong dispatch numbers in Sept’16 as the festivities are two weeks ahead this year compared to last year, while the commercial vehicle players reported weak set of numbers.

Though the dealers expected some slowdown in footfall during second half of September due to Pitru Paksha – considered to be ina

5/10/2016 5:00:25 PM | Posted in Broking Firm Views - Sector Report read full news
Oil & Gas Sector - Monthly round up – Oct’16 - Emkay Global

* Rise in crude oil price:

Brent Crude oil price was up MoM by 1.5%, mainly because of anticipation of freezing output from the meeting in September of OPEC countries. Light-Heavy (L-H) differential declined by $0.6/bbl MoM to $2.4/bbl.

 

* Refining margins and product spreads:

Calcul

5/10/2016 4:22:43 PM | Posted in Broking Firm Views - Sector Report read full news
India Financials - Monthly credit ‐ Dismal signs of improvement yet! - Prabhudas

RBI’s monthly sectoral deployment data continue to highlight the anaemic growth in industrial credit. Though credit growth remained stagnant at 8.2% YoY in Aug’16 compared to a growth of 8.3% in Jul’16 with industrial segment growth turning negative, a scenario we have not witnessed for many years. Growth came mainly from services (12.1% YoY, 0.2% MoM), Agri (13.6% YoY, 0.6% M

5/10/2016 4:16:32 PM | Posted in Broking Firm Views - Sector Report read full news
IT Sector - Will Sep'16 quarter lead to another round of earnings downgrade? - Emkay

* We head into an otherwise strong Sep’ quarter with sombre expectations with cautious commentary across players over the recent weeks

* While a 100-150 bps cut in Infosys’s FY17 revenue guidance is already expected (after the RBS contract cancellation and some moderation in spending momentum), we believe that street awaits more cues on the margin performance given the rev

5/10/2016 4:06:43 PM | Posted in Broking Firm Views - Sector Report read full news
India Energy - CGD gears up to accelerate volumes - RCML

* Domestic price cuts mostly passed on:

Price cuts announced by some of the large CGD companies for retail CNG and PNG segments, as a follow up to 18% cut in domestic gas prices, seems to suggest that cost reduction has been almost fully passed on (especially for CNG). With the exception of Gujarat Gas, almost all CGD companies seemed to be content wi

5/10/2016 3:48:35 PM | Posted in Broking Firm Views - Sector Report read full news
India Utilities - India still underpowered: Power Line Summit 2016 - RCML

Power Ministry figures paint a power-surplus picture, but India is far from providing quality power to consumers willing to pay for it, according to panelists at the Power Line Summit 2016. Also, much needs to be done to unshackle state regulatory commissions from state politics so that tariffs can be rationalised. Panel discussions among utilities, policymakers, regulators and financiers furth

5/10/2016 3:44:00 PM | Posted in Broking Firm Views - Sector Report read full news
IT Sector - Have expectations been set low enough? - ICICI Sec

Q2FY17 is expected to witness tepid revenue momentum despite being the seasonally strongest quarter for the industry. Revenues at the top-5 large cap companies in our coverage universe are expected to grow by just 1.5% QoQ in Q2FY17 (~2.3% in CC terms) – which is the slowest Q2 growth in the past decade. However, unlike Q1FY17, investor expectations are also already reset downwards with c

4/10/2016 5:40:47 PM | Posted in Broking Firm Views - Sector Report read full news
Metallica - Coking Coal steals the show! - Emkay

Key observations

* Global steel prices improved slightly in the month of September. Demand remained tepid. Also, China and India registered record high steel production in the month of September. Therefore, steel prices are expected to remain under pressure at its current level

* Hard coking coal price continued to rally upwards by 54% to US$

4/10/2016 5:25:43 PM | Posted in Broking Firm Views - Sector Report read full news